10-K 0001628280-26-066391 (2026-10-20) vs 10-K 0001628280-25-045769 (2025-10-22)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 9,766 |
28.9% |
| MD&A | Item 7 | 8,798 |
28.9% |
| Legal Proceedings | Item 3, via Note 11 – COMMITMENTS AND CONTINGENCIES | 835 |
13.1% |
| Accounting Policies | Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 4,647 |
15.4% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 220 words changed in this paragraph; it is 46% similar to last year's version.
Years ended August 31, (in thousands, except per share data) 2026 2025 2024 % Change Operating income $ 699,957 $ 748,303 $ 701,299 6.7% (6.5)% Intangible asset amortization 76,205 73,036 67,383 Restructuring/severance 46,200 259 CEO onboarding costs(1) 19,521 1,675 Business divestiture, disposition, acquisitions and related costs 8,255 17,761 884 India Labor Codes Reform 2,883 — Asset impairment 887 — Client bankruptcy charges 750 — Litigation reserve 650 — Sales Tax Dispute(1) Dispute(2) — 2,398 54,048 Executive search costs 1,675 — Restructuring/severance 259 5,596 Asset impairment — 3,443 Adjusted operating income $ 855,308 $ 843,432 $ 832,653 1.3% 1.4% Operating margin 28.3 % 32.2 % 31.8 % Adjusted operating margin(2) margin(3) 34.5 % 36.3 % 37.8 % Net income $ 533,481 $ 597,040 $ 537,126 11.2% (10.6)% Intangible asset amortization 58,762 54,074 49,529 Restructuring/severance 35,625 192 CEO onboarding costs(1) 15,053 1,240 Impairment within Other assets(4) 12,338 — Business disposition, acquisitions and related costs 6,365 13,150 India Labor Codes Reform 2,223 — Asset impairment 684 — Client bankruptcy charges 578 — Litigation reserve 501 — Sales Tax Dispute(2) — 1,775 Gain on business divestiture — (17,205) Gain on sale of investments (5,015) — Business divestiture, acquisitions and related costs 13,150 650 Sales Tax Dispute(1) 1,775 39,727 Executive search costs 1,240 Non-operating income from business disposition (604) — Restructuring/severance 192 4,113 Asset impairment — 2,531 Income tax items (493) 1,351 1,397 Adjusted net income(3) income(5) $ 659,498 $ 651,617 $ 635,073 2.6% Net income $ 597,040 $ 537,126 11.2% Interest expense 56,324 65,778 Income taxes 123,918 114,377 Depreciation and amortization expense 157,691 125,187 EBITDA $ 934,973 $ 842,468 11.0% Non-recurring non-cash expenses — 5,070 Adjusted EBITDA $ 934,973 $ 847,538 10.3% Diluted EPS $ 15.55 $ 13.91 11.8% Intangible asset amortization 1.41 1.27 Gain on business divestiture (0.45) — Business divestiture, acquisitions and related costs 0.34 0.02 Sales Tax Dispute(1) 0.05 1.03 Executive search costs 0.03 — Restructuring/severance 0.01 0.11 Asset impairment — 0.07 Income tax items 0.04 0.04 Adjusted Diluted EPS(3) $ 16.98 $ 16.45 3.2% Weighted average common shares (diluted) 38,385 38,618 1.2%
Source: Item 7, 10-K 0001628280-26-066391 vs Item 7, 10-K 0001628280-25-045769
Risk Factors 191 words changed in this paragraph; it is 62% similar to last year's version.
We use, and are expanding our use of, machine learning and AI technologies in our products and processes. If we fail to keep pace with rapidly evolving AI technological developments, or fail to launch products that are competitive, our competitive position and business results may be negatively impacted. If our competitors or other third parties incorporate AI technologies, such as emerging generative and agentic AI, into their products and processes more quickly or more successfully than us, this could impair our ability to compete effectively. Our use of AI technologies, including generative and agentic AI, requires resources to develop, test and maintain such products, which is costly. Despite our investments in, and commitment of resources to, the development of AI products and technologies, we may not be successful in generating revenues from these efforts. In addition, third parties may be able to use AI to create technology that could reduce demand for our products and services. Even where our AI-enabled products and services are adopted, we may be unable to monetize them profitably. The cost of developing, delivering and operating AI capabilities — including model licensing, inference and compute costs and the consumption of AI tokens — can be significant and variable, and has increased as we expand our use of AI. Our historical pricing has been based substantially on subscription and user-based models, and our efforts to introduce consumption-, usage- or outcome-based pricing that better aligns the price of our AI-enabled offerings with their underlying cost and value may not succeed or may not be accepted by clients. If client adoption or usage of our AI features exceeds our expectations, or if we are unable to accurately forecast usage, price our offerings appropriately, or pass through the associated costs, our AI-related costs may exceed the revenues these offerings generate, and increased usage could adversely affect our margins. Conversely, if adoption develops more slowly than anticipated, we may be unable to recover our AI investments within the timeframe we expect, or at all. Any of the foregoing could adversely affect our profitability, margins and results of operations.
Source: Item 1A, 10-K 0001628280-26-066391 vs Item 1A, 10-K 0001628280-25-045769
Accounting Policies 142 words changed in this paragraph; it is 40% similar to last year's version.
In December 2023, September 2025, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Accounting Standards Update ("ASU") 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Targeted Improvements to Income Tax Disclosures. the Accounting for Internal-Use Software. This ASU enhances annual income tax disclosures primarily related removes all references to our effective tax rate reconciliation prescriptive and income taxes paid. sequential software development stages, and requires entities to start capitalizing eligible software costs when management has authorized and committed to funding the software project and it is probable that the project will be completed and the software will be used to perform the function intended. The amendments in this ASU are to can be applied prospectively, although using a prospective, modified, or retrospective application is permitted, transition approach, and are effective for our interim and annual financial statements periods starting in fiscal 2026. 2029. Early adoption is permitted. This ASU is not expected to have a material impact on our Consolidated Financial Statements. permitted at the beginning of an annual period. We are currently assessing the impact of the new requirements on our Consolidated Financial Statements and disclosures.
Source: Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001628280-26-066391 vs Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001628280-25-045769
Legal Proceedings 127 words changed in this paragraph; it is 61% similar to last year's version.
In the normal course of our business, we are, or may be, are engaged in various legal proceedings, claims, litigation and litigation, and are from time to time subjected to government and regulatory proceedings. proceedings, investigations, and inquiries. In view of the uncertainty inherent in litigation and regulatory such matters, we cannot predict the eventual outcome of such matters or the timing of their resolution, or in most cases reasonably estimate what the eventual judgments, damages, fines, penalties or impact of activity restrictions (if any) restrictions may be. While As a result, we cannot predict the outcome provide assurance that such outcomes will not have a material adverse effect on our consolidated financial position, results of these matters, based operations, cash flows, business or competitive position. Based on information available at August 31, 2025, our 2026, management believes that the ultimate outcome resolution of these unresolved matters against us, that are currently pending or asserted, individually or in the aggregate, will not have a material adverse effect on our consolidated financial position, our results of operations or our cash flows. As litigation or the process to resolve pending matters progresses, we will continue to review the latest information available and assess our ability to predict the outcome of such matters and the effects, if any, on our consolidated financial position, results of operations, cash flows, business or competitive position.
Source: Item 3, via Note 11 – COMMITMENTS AND CONTINGENCIES, 10-K 0001628280-26-066391 vs Item 3, via Note 12 – COMMITMENTS AND CONTINGENCIES, 10-K 0001628280-25-045769
Every change, by type
Sentences and paragraphs of FDS's Risk Factors and MD&A, 10-K 2026-10-20 against 10-K 2025-10-22.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
Cyber-attacks continue to evolve in sophistication, frequency and volume, including as threat actors exploit generative and agentic AI to discover and exploit vulnerabilities at unprecedented speed and scale, and may be difficult to detect for long periods of time. Our protective measures, and those of the third parties to which we are connected, may not be effective, and a failure by our clients or third-party providers to notify us of an incident in a timely manner could delay our response and increase the resulting harm. As a result, we may not be able to anticipate, prevent or detect all attacks, and we are exposed to heightened risks of cyber-attacks or other security incidents. In addition, future advances in computing, including quantum computing, could weaken or render obsolete the encryption and other security measures on which we and our third parties rely, including through the potential future decryption of data captured today.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedRisk Factors
We may be unable to secure data center capacity, power and computing resources on acceptable terms to meet our future needs
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedRisk Factors
Our business, and in particular our growth and our increasing use of AI, depends on access to data center capacity, power and computing resources, including specialized hardware, whether provided through our own facilities or, increasingly, through third-party cloud and data center providers. Demand for these resources has grown rapidly across the industry, driven in significant part by AI, and has contributed to constrained availability and rising costs. As our needs increase, we may be unable to procure sufficient capacity, power or computing resources when needed, in the locations we require, or on commercially acceptable terms, and we may face increased costs, delays in deploying new products and capabilities, or constraints on our ability to scale. Any of the foregoing could adversely affect our operations, margins and our ability to execute our strategy, and could have a material adverse effect on our business, financial condition or results of operations.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedRisk Factors
design, deploy and operate common, globally consistent AI systems, products and controls, and may require us to develop jurisdiction-specific approaches, restrict or delay the availability of certain AI capabilities in certain jurisdictions, or incur significant compliance costs. Because AI technology is highly complex and rapidly developing, it is not possible to predict all of the legal, operational or technological risks that may arise relating to our use of AI. Any of these issues could materially adversely affect our business, financial condition or results of operations.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedRisk Factors
AI technologies used in our products and processes may use or incorporate data from third-party sources, including information they input into the AI tools, which may expose us to risks associated with data rights and protection, such as risks associated with infringing, misappropriating or otherwise violating others’ intellectual property rights, and we may also be unable to protect our data from unintended use or access by third-party AI systems. Our ability to develop, commercialize and scale AI-enabled products and services depends in significant part on our ability to obtain and maintain sufficient rights to use data, including our own proprietary data, data licensed from third-party suppliers, and data contributed by or relating to our clients, for the training, fine-tuning, grounding, retrieval and output-generation functions of AI models and applications. If we are unable to secure data rights on commercially reasonable terms and at the scale required, we may be unable to fully realize the anticipated benefits of, or generate the expected revenues from, our investments in AI, our AI-enabled offerings may be delayed, constrained or rendered less competitive, and we may be exposed to claims of infringement, misappropriation or breach of contract, any of which could have a material adverse effect on our business, financial condition or results of operations.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedRisk Factors
Inadequate or inconsistent governance of our internal use of AI could expose us to security, operational, legal and reputational risks
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedRisk Factors
We are rapidly expanding the use of AI technologies, including generative and agentic AI, across our products, internal systems and business processes. The pace of adoption may outpace the maturity of our governance, controls and oversight. If AI tools are adopted inconsistently or in a decentralized manner across our business, or are used outside of our established governance frameworks and approved environments, we may be exposed to increased operational, security, legal, regulatory and reputational risk.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedRisk Factors
The introduction of agentic AI, which can take autonomous actions across systems, may create new attack surfaces and novel security vulnerabilities that our existing controls were not designed to address. Our policies, controls and monitoring may not keep pace with the rapid evolution of these technologies or with emerging legal and regulatory requirements. Any failure to establish and enforce effective AI governance could result in security incidents, regulatory scrutiny or enforcement, litigation, harm to our reputation and client relationships, and could otherwise have a material adverse effect on our business, financial condition or results of operations.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedRisk Factors
We are undergoing significant organizational change and transformation, and our failure to execute these initiatives effectively could disrupt our business and adversely affect our results
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedRisk Factors
We are undertaking a number of significant organizational, operational and strategic transformation initiatives, including changes to our organizational structure, reporting lines, leadership, product development organization, go-to-market approach, pricing models, and technology and data operations, as well as ongoing investment in AI. These initiatives are complex, are being pursued concurrently, and place substantial demands on management attention and on our workforce. In fiscal 2026, we appointed a new Chief Executive Officer, Chief Financial Officer, Chief People and Workforce Transformation Officer and Chief Technology Officer, among other leadership changes. Significant management transitions of this kind, particularly when they occur concurrently and alongside broader organizational change, involve inherent risk. Such transitions can be disruptive, may result in the loss of institutional or technical knowledge, may affect strategic continuity, execution and decision-making, and may take time to yield their intended benefits. Undertaking too many changes simultaneously, or failing to sequence, resource, prioritize or communicate them effectively, could overwhelm our capacity to execute, disrupt our ongoing business operations, degrade product quality, delivery or client service, and divert resources from revenue-generating activities.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedRisk Factors
Transformation of this scale may also adversely affect employee morale, engagement and retention, including the potential loss of personnel with critical institutional or technical knowledge, and may strain our culture. The costs and disruption associated with these initiatives may be greater than anticipated, and the anticipated benefits, efficiencies or growth may not be realized on the expected timeframe or at all. Any of the foregoing could have a material adverse effect on our business, financial condition or results of operations.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedRisk Factors
Advances in AI may enable our clients and other third parties to build their own solutions and may reduce demand for our products and services
Read it in 10-K 2026-10-20 at sec.gov ↗
RemovedRisk Factors
Cyber-security risks also may be derived from fraud or malice on the part of our employees or third-party service providers, or may result from human error, software bugs, server malfunctions, software or hardware failures or other technological failures. Our and our vendors' use of mobile and cloud technologies may increase our risk for such threats. Our protective systems and procedures and those of third parties to which we are connected, such as cloud computing providers, may not be effective against these threats. In addition, failure by our clients or third-party service providers to notify us of system failures or security breaches in a timely manner could lead to unauthorized access to our systems and data, resulting in adverse effects on our business, operating results or financial condition.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedRisk Factors
While we have dedicated resources responsible for maintaining appropriate levels of cybersecurity, and implemented systems and processes intended to help identify cyberattacks and protect and remediate our network infrastructure, we may not be able to anticipate, prevent or detect all such attacks. As these threats continually evolve, we are required to devote additional resources and investment to modify or enhance our systems and processes, including patch and vulnerability management, which we may not be able to do in a timely or complete manner, or without adversely impacting our business, financial condition or results of operations.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedRisk Factors
AI technologies used in our products and processes may use or incorporate data from third-party sources, including information they input into the AI tools, which may expose us to risks associated with data rights and protection.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedRisk Factors
A decline in equity and/or fixed income returns may impact the buying power of investment management clients
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedRisk Factors
Increased accessibility to free or relatively inexpensive information sources may reduce demand for our products and services
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedRisk Factors
Each year, an increasing amount of free or relatively inexpensive information becomes available, particularly through the internet, and this trend is likely to continue, especially with the deployment of AI tools. The availability of free or relatively inexpensive information may reduce demand for our products and services. While we believe our offerings are distinguished by such factors as standardization, timeliness, normalization, accuracy, ease-of-use, completeness and other value-added factors, if users choose to obtain the information they need from public or other sources, our business, results of operations, and cash flows could be adversely affected.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedRisk Factors
We are party to lawsuits in the normal course of our business, including a purported class action relating to our acquisition, and operation of, the CGS business (Dinosaur Financial Group LLC et al. v. S&P Global, Inc. et al). Litigation and governmental investigations can be expensive, lengthy and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict. Unfavorable resolution of lawsuits could have a material adverse effect on our business, operating results or financial condition. While we maintain insurance coverage in respect of certain risks, some of these lawsuits may not be covered by existing insurance. Even if we successfully defend against these lawsuits, the costs of defending such lawsuits may be material to our business, operating results or financial condition and may divert our management’s attention from our business operations. For additional information regarding legal matters, see Item 3. Legal Proceedings, of this Annual Report on Form 10-K.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedRisk Factors
Additional cost due to tax assessments resulting from ongoing and future audits by tax authorities as well as changes in tax laws
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedRisk Factors
In the ordinary course of business, we are subject to changes in tax laws as well as tax examinations by various governmental tax authorities. The global and diverse nature of our business means that there could be additional examinations by governmental tax authorities and the resolution of ongoing and other probable audits which could impose a future risk to the results of our business.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedRisk Factors
For example, during August 2019 through February 2024, we received various assessment and audit notices from the Commonwealth of Massachusetts Department of Revenue with respect to sales taxes, interest and underpayment penalties relating to the tax periods from January 1, 2006 through December 31, 2023 ("Sales Tax Dispute"). We entered into an agreement with the Commonwealth on November 26, 2024 which fully resolved all matters relating to the Sales Tax Dispute, bringing our total charge with respect to that matter to approximately $66.2 million. For a further discussion see Part II, Item 8. Note 12, Commitments and Contingencies in the Notes to the Consolidated Financial Statements of this Annual Report on Form 10-K.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedRisk Factors
Changes in tax laws or the terms of tax treaties in a jurisdiction where we are subject to tax could have an impact on our taxes payable. In addition, as a global taxpayer, we face challenges due to increasing complexities in accounting for, and collecting, taxes in a variety of jurisdictions, which could impact our tax obligations and effective tax rate.
Read it in 10-K 2025-10-22 at sec.gov ↗
RewordedRisk Factors
To manage this exposure, we use derivative instruments, specifically foreign currency forward contracts, that are designed to offset the impact of currency movements on a portion of our projected operating expenses related to our primary currency exposures. exposures; however, our attempt to hedge fluctuations in foreign currency exchange rates may not be successful, which could cause an adverse impact on both our results of operations and cash flows.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedRisk Factors
We provide public, full-year financial guidance based upon assumptions regarding our expected financial performance, including our ability to grow revenues and Organic ASV, to meet our planned expenses and maintain a certain tax rate, and to achieve our profitability targets. performance.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedRisk Factors
Our indebtedness could have important consequences for our business, including making it more difficult to satisfy our obligations, increasing our vulnerability to general adverse economic and industry conditions, limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate, and placing us at a competitive disadvantage compared to our peers.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedRisk Factors
While significant effort is placed on addressing information technology security issues with respect to the companies we acquire, We also make acquisitions periodically, and we may inherit such cybersecurity risks when these acquisitions are integrated into our infrastructure.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedRisk Factors
We are not dependent on any one third-party content supplier to meet the needs of our clients, with two data Two suppliers each representing represented more than 10% of our total third-party content costs for fiscal 2025. 2026.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedRisk Factors
Use of AI technologies may also increase risks related to cyberattacks or other security incidents or result in a failure to protect confidential information. information (see “Unauthorized access to confidential data including client data, other cyber-attacks, and the failure of our cybersecurity systems and procedures” for further discussion).
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedRisk Factors
We make a range of commitments to our clients regarding our security practices, processes practices and security posture. posture, and if we do not adequately implement and enforce them, we could be in violation of those commitments.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedRisk Factors
We are not dependent on any one third-party content supplier to meet the needs of our clients, with two data suppliers each representing more than 10% of our total content costs for fiscal 2025. clients.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedRisk Factors
Certain of our borrowings are based upon variable interest rates, and although we leverage interest rate swap agreements to manage a portion of our floating interest rate exposure, and, in the event of increases in interest rates, this could result in higher interest expense.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedRisk Factors
Thus, economic uncertainty, economic downturns, lack Any of confidence in the global financial system, and consolidation in this sector foregoing could adversely affect our business, financial results and future growth.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedRisk Factors
While we maintain insurance coverage that is intended to address certain aspects of cybersecurity and data protection risks, such coverage it may not include, or may not be sufficient to cover, cover all or the majority of the costs, losses or types of claims.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedRisk Factors
Use of more advanced technologies and infrastructure is critical to the development of our products and services, the scaling of our business for future growth, and the accurate maintenance of our data and operations.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedMD&A
Our total client count increased mainly due to corporate clients and user count increased primarily due to wealth management users.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedMD&A
revenues. The increase in revenues was primarily from data solutions and workstations, partially offset by a decrease in revenues due to the disposition.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedMD&A
•Technology-related expenses increased by 40 basis points, primarily driven by higher spend in cloud-based hosting services and licensed software arrangements.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedMD&A
•Employee compensation costs increased 220 basis points, primarily due to higher variable compensation costs and stock-based compensation expense mainly due to the recognition, over their respective service periods, of the one-time cash bonus and equity awards granted to our CEO pursuant to the terms of his employment agreement. In addition, variable compensation costs increased mainly due to financial achievement against targets.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedMD&A
•Employee compensation costs increased primarily due to higher variable compensation costs, restructuring charges and an increase in stock-based compensation expense. Variable compensation costs increased due to financial achievement against targets. In addition, the increase in variable compensation costs and stock-based compensation expense was driven by the recognition, over their respective service periods, of the one-time cash bonus and equity awards granted to our CEO pursuant to the terms of his employment agreement. The restructuring charges were related to driving organizational efficiencies.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedMD&A
•Technology-related expenses increased primarily due to higher spend in cloud-based hosting services and licensed software arrangements.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedMD&A
The table below provides an unaudited reconciliation of revenues to organic revenues:
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedMD&A
(1)For fiscal 2026, these costs are related to the recognition, over their respective service periods, of one-time make-whole cash and equity awards issued to our CEO pursuant to the terms of his employment agreement.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedMD&A
(4)Related to the impairment of an equity investment that was recorded to Other income (expense), net on the Consolidated Statements of Income.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedMD&A
(6)Primarily related to the impairment of certain equity investments and the recognition, over their respective service periods, of one-time equity awards issued to our CEO.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedMD&A
We consider a portion of the unremitted earnings of our foreign subsidiaries and outside basis differences not related to those earnings to be permanently reinvested, where applicable. These unremitted earnings and outside basis differences could give rise to tax liabilities if ever remitted or if a foreign subsidiary was sold. As of August 31, 2026, it is not practicable to determine the deferred tax liability associated with such earnings or basis differences. In addition, we have not provided for deferred taxes on any outside basis differences of our domestic subsidiaries as we have the ability and intent to recover these basis differences in a tax-free manner.
Read it in 10-K 2026-10-20 at sec.gov ↗
AddedMD&A
On August 28, 2026, we entered into Amendment No. 1 (the “Amendment Agreement”) to the 2025 Credit Agreement, which primarily (a) extended the maturity date of the 2025 Term Facility from April 8, 2028 to August 28, 2029, (b) extended the maturity date of the 2025 Revolving Facility from April 8, 2030 to August 28, 2031 and increased the revolving commitments by $500.0 million to a total of $1.5 billion without reducing the capacity under the incremental facilities provisions described above, (c) removed the scheduled quarterly principal payment obligations with respect to the 2025 Term Facility and (d) removed the credit spread adjustment of 0.1% for borrowings under the 2025 Credit Facilities.
Read it in 10-K 2026-10-20 at sec.gov ↗
RemovedMD&A
Beginning in fiscal 2025, we are reporting Organic ASV, rather than Organic ASV plus professional services, to focus on the recurring nature of our revenues. This underscores the shift of our offerings toward providing more managed services and less project-based services.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedMD&A
The buy-side and sell-side Organic ASV annual growth rates as of August 31, 2025 were 5.5% and 4.3%, respectively. Buy-side clients account for approximately 82% of our Organic ASV, consistent with the prior year, and primarily include institutional asset managers, wealth managers, asset owners, partners, hedge funds and corporate clients. The remaining Organic ASV is derived from sell-side firms and primarily include broker-dealers, banking and advisory firms, and private equity and venture capital firms.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedMD&A
(2)The user count does not reflect users associated with our fiscal 2025 acquisitions.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedMD&A
As of August 31, 2025, there were 237,324 professionals using FactSet, representing a net increase of 9.7% or 20,943 users in the last twelve months, primarily driven by an increase in wealth management users. The user count does not reflect our fiscal 2025 acquisitions.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedMD&A
For the periods presented, our effective tax rates were lower than the applicable U.S. corporate income tax rate. This was primarily attributable to excess tax benefits from stock-based compensation, a lower U.S. tax impact of foreign earnings, research and development ("R&D") tax credits and a foreign derived intangible income ("FDII") tax deduction, partially offset by our state income taxes.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedMD&A
Years ended August 31, (in thousands, except per share data) 2025 2024 % Change Net income $ 597,040 $537,126 11.2% Diluted weighted average common shares 38,385 38,618 (0.6)% Diluted EPS $ 15.55 $13.91 11.8%
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedMD&A
As of August 31, 2025, we had $486.9 million of undistributed foreign earnings of which $69.1 million are permanently reinvested. It is our intent to permanently reinvest all foreign undistributed earnings, except in jurisdictions where earnings can be repatriated substantially free of tax. It is not practicable to determine the deferred tax liability that would be payable if these earnings were repatriated to the U.S.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedMD&A
Debt issuance costs related to the 2025 Credit Facilities were $3.4 million. These debt issuance costs are presented in the Consolidated Balance Sheets as a direct deduction from the carrying amount of the debt liability for the 2025 Term Facility and within Other assets for the 2025 Revolving Facility. Debt issuance costs are amortized to Interest expense in the Consolidated Statements of Income on a straight-line basis over the contractual term of the debt (which approximates the effective interest method for the 2025 Term Facility).
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedMD&A
The 2022 Term Facility, originally due to mature on March 1, 2025, was repaid in full following $125.0 million of repayments made during the six months ended February 28, 2025. During fiscal 2025, we borrowed $305.0 million and repaid $555.0 million under the 2022 Revolving Facility. The 2022 Credit Agreement was terminated on April 8, 2025, concurrent with entering into the 2025 Credit Agreement.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedMD&A
We leverage interest rate swap agreements to manage our floating interest rate exposure with a fixed interest rate. Our interest rate swap agreements are designated as cash flow hedges at inception.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedMD&A
On April 24, 2025, we entered into an interest rate swap agreement ("2025 Swap Agreement") with a notional amount of $200.0 million to hedge a portion of our outstanding floating SOFR debt with a fixed interest rate of 4.086%. The notional amount of the 2025 Swap Agreement declines by $50.0 million on a quarterly basis beginning May 31, 2025 and matures on February 28, 2026. As of August 31, 2025, the notional amount of the 2025 Swap Agreement was $100.0 million.
Read it in 10-K 2025-10-22 at sec.gov ↗
RemovedMD&A
On March 1, 2024, we entered into an interest rate swap agreement ("2024 Swap Agreement") with a notional amount of $200.0 million to hedge a portion of our outstanding floating SOFR debt with a fixed interest rate of 5.145%. The notional amount of the 2024 Swap Agreement declined by $50.0 million on a quarterly basis beginning May 31, 2024. The 2024 Swap Agreement matured on February 28, 2025.
Read it in 10-K 2025-10-22 at sec.gov ↗
RewordedMD&A
This 5.4% The growth in revenues of 6.7% was driven by a 4.4% corresponding 6.7% increase in organic revenues revenues, which totaled $2,300.2 $2,464.6 million for fiscal 2025, a 0.9% increase from acquisition-related revenues 2026, and a net increase of 0.1% from foreign currency exchange rate fluctuations. fluctuations, partially offset by a 0.1% decrease from disposition revenues, net of acquisition revenues.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedMD&A
From Following the borrowing date Amendment Agreement and from August 28, 2026 through August 31, 2025, the 2026, outstanding borrowings under the 2025 Credit Facilities bore interest at a rate equal to the applicable one-month Term Secured Overnight Financing Rate ("SOFR") SOFR plus a 0.975% spread (comprised of a 0.875% interest rate margin, based on a pricing grid determined by reference to our senior unsecured non-credit enhanced long-term debt rating and our total leverage ratio, plus a 0.1% credit spread adjustment). ratio.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedMD&A
For fiscal 2024, 2026, net cash used in financing activities was $560.9 $799.4 million, consisting mainly of $250.0 million related to the partial repayment of the 2022 Term Facility, $235.2 $644.0 million of share repurchases and $150.7 $164.2 million of dividend payments, partially offset by $91.7 million of proceeds from employee stock plans. payments.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedMD&A
Organic revenues excludes equals our revenues, excluding the current year impact of revenues from acquisitions and the comparable impact of dispositions completed and discontinued lines of business, effected within the past 12 months ("Acquisition revenues" revenues", and disposition and discontinued lines of business together, "Disposition revenues", respectively) and the current year impact from changes in of foreign currency. currency movements.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedMD&A
We believe free cash flow is a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures, can may be used for available to pay debt obligations, make strategic opportunities, including returning value to stockholders, investing in our business, making strategic acquisitions, acquisitions and strengthening investments, pay dividends, repurchase stock, and strengthen the balance sheet.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedMD&A
As Our net headcount reduction as of August 31, 2025, 2026, compared to August 31, 2024, our net headcount growth 2025, was 6.0% 5.5% in the Americas Americas, 2.3% in Asia Pacific and 2.6% 1.2% in each of EMEA and Asia Pacific. EMEA.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedMD&A
This 3.0% The growth in revenues revenue of 7.7% was driven by a 2.5% 9.9% increase in organic revenues, partially offset by a 0.4% increase from acquisition-related revenues 1.7% decrease related to disposition revenues, net of acquisition revenues, and a 0.1% 0.5% net increase decrease from foreign currency exchange rate fluctuations.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedMD&A
Refer to Part II, Item 8., Note 9, 11, Commitments and Contingencies for more information on our contingent matters and Note 8, Income Taxes for information on the accounting of our income tax contingencies, in the Notes to the Consolidated Financial Statements included in this Annual Report on Form 10-K.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedMD&A
This 3.0% The growth in revenues of 4.3% was driven by a 2.5% 5.0% increase in organic revenues, a 0.4% increase from acquisition-related revenues and a 0.1% 0.5% net increase from foreign currency exchange rate fluctuations. fluctuations, partially offset by a 1.2% decrease related to disposition revenues, net of acquisition
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedMD&A
The cash used in investing activities was primarily related to consisted of $114.7 million of capital expenditures of $85.7 million, mainly driven by due to the capitalization of internal-use software development costs and $58.6 million in investments, primarily related to the purchase of mutual funds. costs.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedMD&A
As of August 31, 2025, 2026, we had approximately 9,000 more than 9,200 clients comprised of and over 237,000 investment professionals, 260,000 professionals using our solutions, including institutional asset managers, bankers, wealth managers, asset owners, partners, hedge funds, fund professionals, corporate users, and private equity and venture capital professionals. professionals, and market infrastructure participants.
Read it in 10-K 2026-10-20 at sec.gov ↗
RewordedMD&A
Refer to Part III, Item 12, Security Ownership of Certain Beneficial Owners and Management and Market For Registrant's Common Equity, Related Stockholder Matters, Matters and Issuer Purchases of Equity Securities, of this Annual Report on Form 10-K for further discussion on our share repurchase program.
Read it in 10-K 2026-10-20 at sec.gov ↗
Quiet changesMD&A
Revenues increased in all our segments, primarily mainly in the Americas.
Read it in 10-K 2026-10-20 at sec.gov ↗
